Credit Connect

BDO, liquidators of Irish Charleville Credit Union have put its premises and loan book up for sale, with half a dozen credit unions already eager to acquire the loans. The loan book is said to have a gross value of €14million. However, it is understood that only around €8m worth of loans are performing.

Charleville Credit Union was placed into liquidation last month by the High Court following an application by the Central Bank, with accountants Jim Hamilton and David O’Connor of BDO appointed to the role.

The lender had been under close regulatory supervision for years. It had been unable to raise and keep its cash reserves at the required level of 10pc of assets, despite receiving a €8m bailout from the League of Credit Unions. Attempts to merge with other credit unions also failed.

The sale of the loan book is expected to be of most interest to nearby Mallow and Kilmallock Credit Unions, both of which extended their operations to cover the town after the Charleville Credit Union was shut down. Another four or five credit unions in the area are also understood to have expressed an interested in acquiring the loan book ahead of it being advertised for sale.